Town Manager Joe Colangelo had issued a notice of violation in October 2015 after investigating public complaints about the motel. The nonprofit that owns and operates the facility, Champlain Housing Trust, appealed the claims.

The town had argued that Harbor Place wasn't open to the general public and shouldn't be zoned as a motel. But the board ruled that its customers were members of the general public.

Champlain Housing Trust spokesman Chris Donnelly tells Vermont Public Radio the ruling could have implications in other communities that are working to develop alternative housing for the homeless.